SEC Adopts Permanent Rule for Municipal Adviser Registration
The SEC has adopted a permanent registration regime for municipal advisors. The rule requires registration of any person providing advice to a municipal entity involving how to invest proceeds of municipal offerings, the investment of escrow funds, and municipal derivatives. The rule exempts registered investment advisers and underwriters. The final rule does not require the registration of individuals but requires certain information reporting. To register, a firm must file Form MA with the SEC.
OUR TAKE: The rule is a good regulatory compromise. It makes sense that municipal advisers have some regulatory oversight without requiring advisers and underwriters to be subject to yet another regulatory regime.